ADBE
📉 Adobe’s stock is facing downward pressure due to concerns about its terminal value, transitioning from 20-30% growth to 10%.
💰 Despite a forward P/E ratio of 23, the market is apprehensive about Adobe’s slowing growth trajectory.
🤔 The market is expressing fear about Adobe’s ability to sustain high growth rates in the coming years.
@bernardodegarcia:
“Today, Adobe is doing well, especially if you have put positions. Yesterday, we analyzed the quarterly results, and they were not bad. It is trading at a forward P/E of 23. I think this is wrong. Well, it depends on the adjusted forward, forward GAAP, or forward non-GAAP. Non-GAAP is approximately trading at around 416, between 4 and 378 divided by 16. It is trading at around 23, yes, that’s correct, more or less. Establishing that each quarter it will generate about $4 of earnings per share, it is trading at 22-23. But for a company that is growing at 10%, the problem with Adobe is the market is having a bit of fear of this terminal value. Adobe has gone from growing at 20-30% to growing at 10%, and what will it end up growing in the next 5 years?”
Watch the exact part of the video where Bernardo talks about Adobe here:
View the video on YouTube.
Read more articles by the world’s top 100 analysts on Adobe (ADBE) at the following link. ADBE stock.
